GENERAL TERMS AND CONDITIONS
                                  (Continued)
   
   
      3.    STORAGE SERVICE
   
            3.1   Treatment of Gas.  Seller may subject or permit the
                  subjection of Gas stored hereunder to compression,
                  cooling, cleaning, or other processes to such extent as
                  may be required in Seller's sole opinion.
   
      4.    NOMINATIONS, SCHEDULING AND ALLOCATION
   
            4.1(a)      Nominations.  Seller will accept nominations for
                        Storage Service as provided herein. A valid
                        nomination is a data set which contains, at a
                        minimum, the mandatory data elements included in
                        the NAESB Standards related to nominations, and
                        any additional Seller-required data elements. All
                        Standard and Intra-Day nominations for service
                        shall be made via Electronic Delivery Mechanism
                        ("EDM")as approved by the Commission.  Seller will
                        accept nominations via mail, fax, courier service
                        or personal delivery. Seller will support the
                        receipt of nominations, via the methods listed
                        above, and EDM in a manner designed to enable
                        Customers to submit nominations seven Days a week,
                        twenty-four hours a Day.
   
                        Each nomination shall indicate whether it is being
                        submitted as a Standard or Intra-Day nomination.
                        The standard quantity for nominations, for
                        confirmations and scheduling, in the United
                        States, shall be Dekatherms per gas day. For
                        Canada it shall be Gigajoules per gas day.  For
                        Mexico it shall be Gigacalories per gas day.  For
                        commercial purposes the standard conversion factor
                        between Dekatherms and Gigajoules shall be
                        1.055056 Gigajoules per Dekatherm and between 
                        Dekatherms and Gigacalories shall be 0.251996
                        Gigacalories per Dekatherm.  (For reference 1
                        Dekatherm = 1,000,000 BTUs; 1 Gigajoule =
                        1,000,000,000 Joules; and 1 Gigacalorie =
                        1,000,000,000 Calories.) The standard BTU is the
                        International BTU, which is also called the
                        BTU(IT); the standard Joule is the Joule specified
                        in the SI system of units.